RB criteria. David, you succeeded in provoking thought alright. Got my head spinning a little. Wonder if you or someone else could help. I have come across many warnings made in Fooldom about avoiding those darlings of the Street, those stocks that people are boasting about as the next Microsoft, etc. Am I understanding you right when I say that those darlings are indeed to be avoided unless they fit the 6 criteria for a RB?

Hi again, Ron...

I don't want to speak for David, but... well, actually I guess I do. ;)

Rule Breaker investing should only be a small part of anyone's portfolio, so it naturally follows that there will be a number of companies that belong in your portfolio that do not fit the RB criteria.

So really it boils down to this: If your portfolio is far enough along that you're now looking for a Rule Breaker (because, after all, risky RB stocks should not be the first stocks you buy), then yes... you'll want the companies you are considering to meet all the RB criteria.

However, if you are not specifically looking for RB-type companies, then you'll want them to meet whatever criteria is appropriate.

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